UK Economics

What uncertainty? Top economist TRASHES claims of the UK economy suffering due to Brexit

LEADING economist Paul Donovan dismantled claims that Britain’s economy will suffer after the Brexit referendum.

Mr Donovan said that ordinary people do not care about Brexit talks because EU negotiations are the “definition of tedium”.Mr Donovan, a global economist and managing director at UBS Wealth Management, insisted that Brexit is not creating uncertainty, despite claims from the Confederation of British Industry (CBI) that uncertainty could harm businesses.

The UBS economist told CNBC: “The honest answer is that in terms of day-to-day life in the UK, no one cares.

“The EU negotiations are the very definition of tedium and whilst the various problems affecting the Government and indeed the opposition, are attracting a lot of attention in the media.

Brexit News Bank of England Finance London UKBloomberg/Getty

Paul Donovan said the EU talks are the “definition of tedium”

“It’s not necessarily creating uncertainty. We are seeing the UK economy perform better this year than was expected.“The economic output has been somewhat stronger. Investment is still continuing at a steady, if somewhat unexciting, pace.

“So the UK is doing alright, not as well as they could’ve been doing but ok in the current environment.”

Bank of England Governor Mark Carney said the UK economy should be “booming” but is preventing it.

Interest rates rose last week from 0.25 to 0.5 per cent – the first rate rise in more than a decade.Mr Carney insisted Brexit was responsible for the rise. He said: “These are not normal times. Brexit will redefine the UK’s relationship with our largest trade and investment partner.”

The Bank said in a statement: “The decision to leave the  is having a noticeable impact on the economic outlook.”

Mr Carney also warned there would be a very gradual rise in interest rates over the next few years.

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